Buenaventura FSRU

From Global Energy Monitor

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Buenaventura FSRU, also known as the Pacific LNG Terminal, is a proposed floating LNG import terminal in Colombia.

Location

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Project Details

  • Owner: Unidad de Planeación Minero Energética (UPME)
  • Parent comany: Unidad de Planeación Minero Energética (UPME)
  • Location: Bay of Buenaventura, Colombia
  • Coordinates: 3.895046, -77.068010 (approximate)
  • Capacity:
  • Status: Proposed
  • Type: Import
  • Start Year: 2023

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

In November 2018, the Colombian government announced a plan to launch a tender for an FSRU to be located in the Bay of Buenaventura, on the Pacific coast. The FSRU would become the second import terminal in Colombia and would commence operations at the end of 2023. The selection of the winner was expected in mid-2019.[1]

In July 2020, the government relaunched the tender process for the FSRU and the related Buenaventura-Yumbo Gas Pipeline, which will connect the facility to Yumbo, Valle del Cauca in the south-west of the country. The terminal and the pipeline together were estimated to cost US$700 million and the rationale for the project is that Colombia is expected to see increased gas consumption in the coming years. Under the new tender timetable, a single bidder for construction and operation of both the FSRU and the pipeline was to be agreed by March 2021, with the facilities scheduled to become operational by late 2023/early 2024.[2] Colombian pipeline operator TGI was reportedly contemplating a bid for the project as of 2020.[3]

In October 2021, Colombia's energy planning agency UPME announced that it had canceled its tender for the terminal and pipeline project due to lack of interest.[4][5][6] Analysts have cited several potential reasons for the unsuccessful tender, including the project's complexity and high financial risk factor, seismic threats, changing economic conditions, and opposition from domestic gas producers and environmentalists.[5] However, UPME has not ruled out reviving the tender process at a future date.[5][6]

The proposed Pacific LNG Terminal is distinct from the Aguadulce LNG Terminal, a separate LNG project being studied for development at the northern end of the Bay of Buenaventura.[7]

Opposition

Opponents of the Buenaventura terminal project have objected to its completion on various grounds, including environmental concerns about bringing Qmax ships into the protected waters of Buenaventura Bay, logistical concerns about the terminal's proximity to military installations on Isla Naval, and economic concerns related to the high cost of imported natural gas.[8]

Articles and resources

References

  1. GIIGNL World Report 2019 GIIGNL, accessed August 5, 2019
  2. "Colombia relaunches bid process for Pacific LNG import terminal," Shearman and Sterling, Jul. 15, 2020
  3. "Colombiana TGI mantiene interés por proyecto de GNL". BNamericas. May 27, 2020.
  4. Colombia aborts Pacific LNG tender, BN Americas, Oct. 25, 2021
  5. 5.0 5.1 5.2 "UPME declara desierta la convocatoria para buscar el inversionista de la Terminal del Pacífico en Colombia". GN Global. October 25, 2021.
  6. 6.0 6.1 "ACTA DE DECLARATORIA DE CONVOCATORIA DESIERTA - CONVOCATORIA PÚBLICA UPME GN NO. 01-2020" (PDF). UPME. October 21, 2021.
  7. "FEASIBILITY STUDY FOR THE AGUADULCE LNG TERMINAL AND POWER PLANT PROJECT IN COLOMBIA" (PDF). USTDA. October 30, 2020.
  8. "Los pecados que lleva a cuestas la regasificadora del Pacífico". Portafolio. February 4, 2020.

Related GEM.wiki articles

External resources

External articles